Uber Technologies (NYSE:UBER) Downgraded to "Hold" Rating by Arete Research

Key Points

• Arete Research downgraded Uber from “strong buy” to “hold,” though broader analyst sentiment remains positive with a “Moderate Buy” consensus and an average price target of $103.03.
• Uber reported quarterly EPS of $0.81, slightly above expectations, while revenue reached $14.19 billion and increased 12.2% year over year.
• CEO Dara Khosrowshahi and insider Andrew Macdonald made substantial stock purchases, buying approximately $10 million and $5.3 million of Uber shares, respectively—potentially signaling management confidence in the company’s valuation.

Uber Technologies (NYSE:UBER - Get Free Report) was downgraded by stock analysts at Arete Research from a "strong-buy" rating to a "hold" rating in a research report issued to clients and investors on Thursday, Zacks reports.

Other equities analysts have also recently issued reports about the company. Wells Fargo & Company reaffirmed an "overweight" rating on shares of Uber Technologies in a report on Wednesday, September 2nd. Bank of America dropped their price target on Uber Technologies from $104.00 to $103.00 and set a "buy" rating for the company in a research report on Tuesday, July 28th. Tigress Financial lifted their price target on Uber Technologies from $110.00 to $115.00 and gave the stock a "buy" rating in a research note on Friday, June 12th. Weiss Ratings upgraded shares of Uber Technologies from a "hold (c)" rating to a "hold (c+)" rating in a research report on Friday, September 4th. Finally, Evercore reiterated an "outperform" rating and issued a $150.00 price objective on shares of Uber Technologies in a research report on Wednesday, August 5th. Two analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, four have assigned a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, Uber Technologies has a consensus rating of "Moderate Buy" and a consensus target price of $103.03.

Uber Technologies Trading Up 2.2%

Shares of UBER opened at $72.64 on Thursday. Uber Technologies has a twelve month low of $65.41 and a twelve month high of $101.99. The company has a current ratio of 0.84, a quick ratio of 0.84 and a debt-to-equity ratio of 0.38. The firm has a market capitalization of $148.38 billion, a P/E ratio of 15.97, a PEG ratio of 5.63 and a beta of 1.16. The firm's 50-day moving average is $74.01 and its two-hundred day moving average is $73.61.

Uber Technologies (NYSE:UBER - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The ride-sharing company reported $0.81 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.80 by $0.01. The company had revenue of $14.19 billion during the quarter, compared to the consensus estimate of $14.24 billion. Uber Technologies had a net margin of 17.34% and a return on equity of 43.36%. The company's revenue for the quarter was up 12.2% on a year-over-year basis. During the same period last year, the firm earned $0.60 EPS. Uber Technologies has set its Q3 2026 guidance at 0.840-0.880 EPS. On average, research analysts predict that Uber Technologies will post 3.45 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Dara Khosrowshahi bought 141,000 shares of the business's stock in a transaction that occurred on Thursday, September 10th. The stock was purchased at an average price of $70.96 per share, with a total value of $10,005,360.00. Following the purchase, the chief executive officer owned 1,367,100 shares of the company's stock, valued at $97,009,416. This trade represents a 11.50% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Andrew Macdonald purchased 70,000 shares of the firm's stock in a transaction on Friday, September 4th. The shares were purchased at an average cost of $75.83 per share, for a total transaction of $5,308,100.00. Following the completion of the purchase, the insider directly owned 426,320 shares in the company, valued at $32,327,845.60. The trade was a 19.65% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 3.81% of the stock is owned by company insiders.

Hedge Funds Weigh In On Uber Technologies

A number of institutional investors have recently modified their holdings of UBER. Brighton Jones LLC lifted its position in Uber Technologies by 3.4% during the fourth quarter. Brighton Jones LLC now owns 74,460 shares of the ride-sharing company's stock worth $4,491,000 after buying an additional 2,474 shares during the period. Revolve Wealth Partners LLC increased its stake in shares of Uber Technologies by 65.0% during the 4th quarter. Revolve Wealth Partners LLC now owns 15,563 shares of the ride-sharing company's stock valued at $939,000 after acquiring an additional 6,129 shares during the last quarter. Bison Wealth LLC increased its stake in shares of Uber Technologies by 20.3% during the 4th quarter. Bison Wealth LLC now owns 3,792 shares of the ride-sharing company's stock valued at $229,000 after acquiring an additional 641 shares during the last quarter. Caxton Associates LLP purchased a new position in shares of Uber Technologies during the 1st quarter worth about $304,000. Finally, Schnieders Capital Management LLC. purchased a new position in shares of Uber Technologies during the 2nd quarter worth about $842,000. Institutional investors and hedge funds own 80.24% of the company's stock.

More Uber Technologies News

Here are the key news stories impacting Uber Technologies this week:

• Positive Sentiment: CEO Dara Khosrowshahi purchased 141,000 shares for approximately $10 million at an average price of $70.96, increasing his direct ownership by 11.5%. The large purchase is being interpreted as a signal that management considers Uber undervalued. Uber CEO stock purchase article
• Positive Sentiment: Scotiabank initiated coverage with a “sector outperform” rating and a $100 price target, implying significant upside from recent trading levels. Wedbush has also maintained an “outperform” rating, reinforcing the favorable sell-side view.
• Positive Sentiment: Uber, WeRide and AVOMO received Spain’s first national permit for Level 4 autonomous passenger vehicles on public roads. The partners plan to begin mapping and supervised testing with an initial 20-vehicle fleet in Madrid, targeting commercial operations by the end of 2026. The approval supports Uber’s strategy of offering robotaxi services through partners rather than building vehicles itself. Reuters Spain autonomous vehicle permit article
• Positive Sentiment: A new Wakefern partnership adds more than 375 supermarkets, including ShopRite and other regional banners, to Uber Eats. The deal expands grocery delivery scale and strengthens Uber’s presence in recurring everyday purchases. Uber Wakefern grocery partnership article
• Neutral Sentiment: Unusually heavy call-option activity and management commentary at the Goldman Sachs technology conference indicate heightened investor interest, but options positioning and conference remarks do not necessarily change Uber’s underlying earnings outlook.
• Negative Sentiment: Uber drivers in Amsterdam sued over claims that the company’s pay algorithm reduced earnings and violated privacy laws. Potential legal costs, regulatory scrutiny and changes to driver compensation could pressure margins if the claims gain traction. Amsterdam Uber driver lawsuit article
• Negative Sentiment: Management said savings from layoffs and lower insurance costs may be used to reduce ride prices. While this could stimulate demand, it may also limit near-term revenue or margin expansion and adds to concerns surrounding Uber’s restructuring and large autonomous-vehicle investments.

Uber Technologies Company Profile

Uber Technologies, Inc is a technology company that operates a global platform connecting consumers with drivers, couriers, merchants and transportation providers. The company's core mobility business enables users to request rides through the Uber app, including options such as private rides, taxis and other forms of local transportation.

Uber also operates Uber Eats, a delivery marketplace that connects consumers with restaurants, grocery stores and other retailers. In addition, the company provides logistics services through Uber Freight, which connects carriers and shippers, and offers advertising solutions to businesses seeking to reach users on its platform.

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